No business was left untouched by the Covid-19 pandemic this year. For most SME owners, the impact was overwhelming, but at the same time there were some business models that prospered from the changed economic, social, and customer landscape. We would like to highlight and talk about three of these business models today.
Farm to Table
The pandemic taught us all that when it comes to prioritizing expenses, food will always make it to the top of the list. In fact, all those who can afford it will divert their money to access the best quality, hygienic and most nutritious food items they can buy. This customer behavior led to a massive uptick in fresh food items and healthy eating options, and everyone in the sector saw an unexpected growth spurt.
Cleaning Services
The coronavirus re-taught us the importance of cleanliness and hygiene. The hand-washing and sanitizing routines drummed into our heads led to people paying for a whole host of cleansing related products and services. From bidets to disinfectant spraying services to deep clean consulting to UV ray devices – any business in the realm of cleanliness saw increased business opportunities during the pandemic.
Mask Designing
Masks have become quite a reflection of 2020 and have evolved from being a utility item to a fashion accessory within a span of months. And any fashion designer, boutique owner, or hobbyist that pivoted quickly to manufacture trendy and safe masks made a killing in the market.
Despite being in a sector that saw a constant increase in customers, these businesses didn’t just automatically gain higher margins but had to apply a tactical approach combined with a vision to achieve desired results. Sure they had a natural advantage, but the most successful of the lot demonstrated 3 key traits –
Flexibility
No existing business model was tailored to fit into a pandemic situation, but being able to strategize and adapt to the changes, enabled them to grab opportunities where their peers failed. Every month of the pandemic brought new twists and turns, and being able to make quick and bold decisions is a vital skill for small businesses in 2020 and beyond.
Mental Strength
No one can deny that adding the fear, uncertainty, and isolation of the COVID-19 crisis to the demands of running a business in chaotic times can leave even the strongest of leaders struggling to cope. Hence a calm and resilient mindset is crucial to stay 100% invested in the business.
Raising Capital
Many small businesses saw years of growth in a few weeks! However, opportunities don’t just translate into business; you need to scale quickly, which requires cash. Many SMEs saw sales shooting through the roof overnight, but as inventory ran out, they had a hard time finding dollars to fulfill demand. Existing relationships and open credit options with lenders proved crucial for SMEs to turn opportunities into profits.
We at Crest Hill Capital have been at the frontlines of the Coronavirus disruption – helping businesses get back up on their feet with easy and fast liquidity boosters. From Line of Credit to Merchant Cash Advances to Working Capital Funding – we provide a range of flexible credit options on fair terms and quick turnaround times.
Drop a line below to know more about how we can help your business pivot to fit the new normal.